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Reed switches are important components in electrical devices because of their ability to make or break an electrical circuit. Located inside of the switch are two metal contacts that serve as the bridge for the current. When the contacts are normally open, the current cannot travel across the opening to complete an electrical circuit. However, if a magnet is placed near the contacts, they will attract and close the circuit by transmitting electricity across them.​

The presence of a magnet is necessary for the switch to change states. As long as the magnet is present, the electrical current will continue to pass through the joined contacts. Once the magnet is removed, the contacts will separate and discontinue the circuit.

All components within the reed switch are designed to withstand a predetermined maximum load of electricity when the contacts are closed. Materials are used to resist the heat generated by the designated current. If too much electricity travels through the circuit, the materials will begin to melt due to the excessive heat. This process is known as overloading a circuit or "blowing a fuse".